dollar averaging

noun

1. a system of buying securities at regular intervals, using the same amount of cash for each purchase, over a considerable period of time regardless of the prevailing prices of the securities, resulting in having bought the total at an average cost.

Word History and Origins

Origin of dollar averaging¹

First recorded in 1925–30

Example Sentences

Only Northern Iowa and Western Illinois spent less, and only Northern Iowa got more value for its dollar, averaging $7,572 recruiting dollars per win to SDSU’s $8,652.

From Washington Times

In defense, Funston points out that M.I.P.'s risks are minimized by dollar averaging, i.e., by putting the same amount into a stock at regular intervals, the buying prices average out in the market's ups and downs.

From Time Magazine Archive

Most of them buy on a "dollar averaging" plan, i.e., at regular intervals, they invest the same amount of cash in a stock.

From Time Magazine Archive

Most funds invest on the "dollar averaging" principle, i.e., assign a specific amount of money each year to buying a certain stock.

From Time Magazine Archive

Critics of the new stock-buying program argue that stocks are always risky, claim that dollar averaging has not really been tested since the market has pushed consistently higher over the past four years.

From Time Magazine Archive